6 Tips to Reduce AWS API Gateway Costs

Here's how to slash your AWS API Gateway expenses:

1. Choose the right API type (HTTP APIs are cheapest)
2. Use caching effectively
3. Set up request throttling
4. Implement usage plans and API keys
5. Reduce data transfer
6. Track and review API usage

Quick comparison of API types:

API Type	Cost per Million Requests	Best For
HTTP API	$1 (first 300 million)	Simple, cheap solutions
REST API	$3.50 (first 333 million)	Complex use cases
WebSocket	$1 per million messages	Real-time apps

Key takeaways:

• Switch to HTTP APIs when possible (up to 71% savings)
• Enable caching to reduce backend calls
• Set up throttling and usage plans to control costs
• Compress payloads to cut data transfer expenses
• Use AWS tools like CloudWatch and Cost Explorer to monitor usage

Remember: Optimizing API Gateway costs is an ongoing process. Keep watching, adjusting, and fine-tuning for best results.

Related video from YouTube

How AWS API Gateway Pricing Works

AWS API Gateway pricing depends on a few key factors. Let's break it down:

1. API Type

AWS offers two main API types, each with different pricing:

API Type	Cost per Million Requests
HTTP API	$1 (first 300 million)
REST API	$3.50 (first 333 million)

2. Request Volume

The more requests you make, the less you pay per request. For example, HTTP API requests drop to $0.90 per million after 300 million.

3. Data Transfer

You'll pay $0.09 per GB for data sent to the internet.

4. Caching

If you use caching, you'll pay extra. Prices range from $0.02/hour for a 0.5 GB cache to $3.80/hour for a 237 GB cache.

5. WebSocket Connections

For WebSocket APIs:

• $1 per million messages (up to 32KB each) for the first billion
• $0.80 per million after that
• $0.25 per million connection minutes

Here's a real-world example:

An Edge Optimized API with 5 million calls per month, each returning 3 KB responses:

• API calls: 5 million * $3.50/million = $17.50
• Data transfer: 14.3 GB * $0.09 = $1.29
• Total: $18.79

Remember: AWS offers a free tier for the first year, including 1 million HTTP API calls, 1 million REST API calls, and 1 million WebSocket messages & 750,000 connection minutes per month.

1. Pick the Best API Type for Your Needs

Choosing the right API type can slash your AWS API Gateway costs. Let's break down the three main options:

API Types Compared

API Type	Cost per Million Requests	Best For	Key Features
HTTP API	$1 (first 300 million)	Simple, cheap solutions	Fast, basic
REST API	$3.50 (first 333 million)	Complex use cases	More control, API keys
WebSocket	$1 per million messages	Real-time apps	Two-way chat

HTTP APIs are the budget-friendly choice at $1 per million requests (first 300 million). They're perfect for simple setups where you don't need fancy features.

REST APIs cost more ($3.50 per million requests) but pack extra punch. They're ideal when you need things like API keys or request validation.

WebSocket APIs charge $1 per million messages. Pick these for real-time stuff like chat apps.

So, how do you choose?

• Need API keys or client throttling? Go REST.
• Can live without those? HTTP APIs will save you cash.

Think about it this way:

A B2B SaaS company building a basic data service? HTTP APIs are your friend.

Creating a complex platform with different access levels? REST APIs are worth the extra cost.

Bottom line: Match the API type to your specific needs to keep costs in check.

2. Use Caching Effectively

Caching can slash your AWS API Gateway costs. It stores responses temporarily, cutting backend calls and speeding up your API.

Here's the deal:

API Gateway keeps responses in RAM when caching is on. It serves these cached responses for a set time instead of hitting your backend. Result? Fewer Lambda invocations, less server load, lower costs.

The perks:

• Faster responses
• Less backend strain
• Lower bills

Setting up caching:

1. Turn it on in the API Gateway console for your stage or specific endpoints.

2. Set the Time-to-Live (TTL):

"We set our TTL to 300 seconds for our product catalog API. It cut our Lambda invocations by 60%."

3. Pick the right cache size:

Cache Size	Cost per Month (us-east-1)
0.5 GB	$14.60
1.6 GB	$46.72
6.1 GB	$177.74

4. Use cache keys for unique requests (e.g., user ID for personalized content).

5. Keep an eye on cache hit rates with CloudWatch. Adjust if you see lots of misses.

6. For dynamic data, use shorter TTLs or cache invalidation.

Test different setups to find what works for your API and budget.

"Caching dropped our average API response time from 55ms to 30ms

3. Set Up Request Throttling

Request throttling keeps your API costs in check and stops your system from getting swamped. It caps how many requests a client can make in a given time.

Here's the lowdown:

1. Pick your throttling level

AWS API Gateway lets you throttle at three levels:

Level	What it does
Account	Covers all APIs in your account for a region
API/Stage	Limits specific API methods in a stage
Client	Caps individual API keys in a usage plan

2. Set your limits

You'll need two numbers:

• Rate limit: Steady requests per second
• Burst limit: Max requests for short spikes

For example:

Rate: 10/second
Burst: 20

This handles 10 requests per second normally, but allows brief jumps to 20.

3. Set it up in AWS

• Hit the API Gateway console
• Pick your API and stage
• Find 'Throttling'
• Put in your limits

4. Use CLI for API-level throttling

Try this command:

aws apigateway update-stage --rest-api-id <api-id> --stage-name <stage> --patch-operations op='replace',path='/throttling/rateLimit',value='10'

5. Keep an eye on things

Watch your CloudWatch metrics. Lots of 429 errors? You might need to tweak your limits.

"We set a 5 requests/second rate with a 10 burst for our product API. It slashed our Lambda costs by 30% without hurting user experience", says Sarah Chen, CTO at TechSprint.

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4. Use Usage Plans and API Keys

Usage plans and API keys in AWS API Gateway help you manage API access and costs. Here's how to use them:

1. Set up usage plans

Usage plans define API access limits:

TestAPIUsagePlan:  
  Type: 'AWS::ApiGateway::UsagePlan'  
  Properties:  
    ApiStages:  
      - ApiId: !Ref TestUsagePlanAPI  
        Stage: !Ref deploymentEnvironment  
    Description: Usage plan for test API  
    Quota:  
      Limit: 100  
      Period: MONTH  
    UsagePlanName: "test-usage-plan"

This plan caps requests at 100 per month.

2. Generate API keys

Create API keys in the AWS console or import from a CSV file.

3. Link API keys to usage plans

Connect each key to a plan to apply its limits.

4. Enable API key requirement

Turn on 'API key required' in your method settings:

Resources:  
  TestUsagePlanAPI:  
    Type: AWS::Serverless::Api  
    Properties:  
      StageName: !Ref deploymentEnvironment  
      Auth:  
        ApiKeyRequired: 'true'

5. Monitor and adjust

Watch your CloudWatch metrics. Lots of 429 errors? You might need to tweak your limits.

"Usage plans and API keys slashed our API Gateway costs by 25% in two months. It gave us tight control over API access and stopped abuse", says Tom Chen, Lead DevOps Engineer at CloudTech Solutions.

Quick tips:

• Rotate API keys often
• Keep sensitive info out of API keys
• Use AWS Budgets with usage plans for better cost control

5. Reduce Data Transfer

Data transfer costs can eat into your AWS API Gateway budget. Here's how to trim them down:

Compress payloads

API Gateway lets you squash response payloads. Here's how:

1. Hit the API Gateway console
2. Switch on "Content encoding" in API settings
3. Pick a "Minimum body size" for compression (0-10,485,760 bytes)

Don't forget to redeploy after flipping the switch on existing APIs.

DIY compression in Lambda

No built-in compression for HTTP APIs? No problem. Roll your own in Lambda:

1. Whip up a compression.js file
2. Export a function to check the accept-encoding header
3. Use zlib to apply Brotli, Gzip, or Deflate compression

Leverage CloudFront

CloudFront caches content at edge locations, slashing data transfer costs. Bonus: it auto-compresses too.

Stay in your lane (region)

AWS plays favorites with intra-region transfers:

Transfer Type	Cost
Same AZ	Free
Intra-Region	$0.01/GB
Cross-Region	$0.02/GB

Go private

Use private IP addresses when AWS services chat. It's cheaper than public or elastic IPs.

Keep tabs

Use Cost Explorer and Trusted Advisor to spot data transfer money pits.

6. Track and Review API Usage

Keeping an eye on your API usage is crucial for managing AWS API Gateway costs. Here's how to do it:

Key Metrics to Watch

1. Request Count: How many API calls are you getting?
2. Error Rates: High 4XX or 5XX errors? Fix them fast.
3. Latency: Long response times = frustrated users and higher costs.
4. Cache Performance: Low hit rates? Time to tweak your strategy.

AWS Tools for Tracking

CloudWatch

CloudWatch is your best friend for API Gateway metrics. It updates every minute.

To get method-level data:

1. Open API Gateway console
2. Select your API
3. Go to "Stages"
4. Pick a stage
5. Turn on "Detailed CloudWatch Metrics"

Now you can see which endpoints are hogging traffic or causing trouble.

AWS Cost Explorer

Use Cost Explorer to visualize your API Gateway spending. It helps you:

• Spot cost trends
• Compare costs across APIs or stages
• Find your priciest endpoints

AWS Budgets

Set up budgets to avoid bill shocks:

1. Open AWS Budgets console
2. Click "Create budget"
3. Choose "Cost budget"
4. Set amount and period
5. Add alerts (e.g., 80% of budget)

Why Bother?

Regular reviews help you:

• Catch issues before they explode your costs
• Find ways to optimize API usage
• Make smart decisions about scaling or throttling

Remember: Data is power. Use these tools to keep your API Gateway costs in check.

Conclusion

Managing AWS API Gateway costs isn't a set-it-and-forget-it task. It's an ongoing process that needs your attention. But don't worry - with the right strategies, you can cut costs without hurting performance.

Let's recap the six cost-saving tips we covered:

Tip	Action
1. Choose the Right API Type	Go for HTTP APIs when you can
2. Cache Smart	Set up caching with smart expiration times
3. Throttle Requests	Control API usage to avoid overuse
4. Use Usage Plans & API Keys	Manage access and track client usage
5. Cut Down Data Transfer	Slim down payloads and use efficient formats
6. Keep an Eye on API Usage	Watch your metrics and adjust as needed

Here's the deal: you need to stay on top of this stuff. Use AWS tools like CloudWatch, Cost Explorer, and AWS Budgets to track your spending and usage.

Want a quick win? Switch from REST APIs to HTTP APIs. You could save up to 71% on API calls. The first 300 million HTTP API calls cost $1.17 per million, while the first 333 million REST API calls cost $3.50 per million.

Don't sleep on AWS Budgets. Set up alerts for when you hit 80% of your budget. It's a simple way to avoid nasty surprises on your bill.

And think big picture. At Modus Create, we've seen companies save up to 66% with Compute Savings Plans compared to on-demand pricing. So, look at your whole AWS setup when you're trying to save money.

Remember: keep watching, keep adjusting, and keep optimizing. Your wallet will thank you.

FAQs

How do I reduce latency in API Gateway?

Want to speed up your API Gateway? Enable API caching. It's like a memory bank for your endpoint's responses.

Here's the gist:

1. API Gateway checks its memory
2. If it finds a match, it serves that
3. If not, it asks your backend

This means:

• Faster responses
• Less backend strain
• Smaller bills

But heads up: Caching isn't free. You'll pay hourly based on cache size.

Quick tip: Start small. Watch how it performs. Tweak as you go.

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